Union Bank ups base rate by 0.5 per cent to 8.50 per cent

Public sector lender, Union Bank of India (UBI), on Friday said that it has upped its base rate by 0.50 per cent.

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ITGD Bureau

Mumbai

October 16, 2010

UPDATED: October 16, 2010 08:28 IST

Public sector lender, Union Bank of India (UBI), on Friday said that it has upped its base rate by 0.50 per cent.

Accordingly, the bank's base rate will stand revised at 8.50 per cent from the earlier 8 per cent, a press release issued stated.

Banks are required to review their base rate every quarter and this is the first review of its base rate by UBI since its introduction in July.

The bank has also raised its term deposit rates for retail deposits.

The increases have been effected "in view of the current macroeconomic scenario, hardening interest rates and the RBI's policy stance," the bank said.

For deposits of one-year to less than 3-years, the interest rate has been increased by 0.25 per cent from 7 per cent to 7.25 per cent.

For 3-years and above, it has been raised from 7.25 per cent to 7.50 per cent, the release said.

The bank is offering 8 per cent for retail deposits of a maturity of 10-years. This interest rate is also linked to a special product offering by name `Union Million Deposit' under which investment will mature to Rs 10-lakh at the end of 10-years, either through a lump-sum investment or through a monthly investment in recurring deposit plan.

The revised rates will be applicable with effect from October 18.

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